If the car’s current market value is higher than the buyout price in your contract, you have "equity." Buying it is a smart financial move because you’re getting it for less than its worth.
When you sign a lease, the dealer sets a —an estimate of what the car will be worth at the end of the term. This amount is also your "option to buy" price. car lease with option to buy
If you have maintained the car well and know its full history, it is often a safer bet than buying a different used car with an unknown past. 3. The Financial "Checklist" If the car’s current market value is higher
Some contracts allow you to buy the car before the lease ends, though this often involves paying the remaining lease payments plus the residual value. 2. When to Exercise Your Option If you have maintained the car well and
The most common option. You purchase the car when the lease expires.
Compare your contract's residual price to current Kelley Blue Book values.
If you've exceeded your mileage limit or the car has significant scratches, buying it allows you to avoid hefty end-of-lease fees .